Unlike some of the other free birthday stuff in Toronto lists you’ve seen online, I actually live in the city and have verified all of the deals. Start early and get a free drink at Starbucks or Tim Hortons (maybe both). For breakfast, the best place to visit is Denny’s since you can claim a build your own Grand Slam Breakfast for free. Both What A Bagel and Kettleman’s offers free bagels, so grab some and put them in your backpack. For lunch, The Works has you covered. Need an afternoon pickup? Get bubble tea at The Alley, and Chatime. For dinner, you can get a free slice of their Billy Miner Pie with your meal.

You’ll quickly realize that there’s plenty of free birthday food in Toronto. That said, many retailers such as Sephora and the Body Shop also have gifts waiting for you. Before you head out, call the stores where these deals are to check if they’re still available. Here’s a list of the best birthday freebies in Toronto.

The Alley

Although they don’t actively advertise it, if you have The Alley’s app, you get a free bubble tea for your birthday. The coupon shows up in your app on your birthday and it’s good for five days. The Alley has multiple locations in the city and it comes sealed so it’s something you can put in your fridge for a few days.

Arby’s

Growing up, I used to love Arby’s as there was a location beside the arcade at my favourite mall. Admittedly, it’s a bit of an acquired taste, and the only locations left in the greater Toronto area are in Burlington and Oshawa, so it may not be easy to get to. The website doesn’t say anything specific, but app users have reported getting a coupon for a free snack shake or cookie coupon with any purchase when their birthday rolls around

Applebee’s

My apologies to those looking for birthday freebies in Toronto that are actually in the city. Some of the restaurants on this list are in the GTA and I felt it was worth a mention. I’ve also listed them in alphabetical order which is why two places outside of the GTA have appeared so high. Applebee’s has a location in Ajax and gives you a free entrée when purchasing another meal at regular price as long as you’re signed up for their e-club newsletter.

Baskin-Robbins

Everyone loves ice cream right? Club 31 members will love the free scoop on their birthday when they purchase a 2.5 oz scoop or 3 oz soft serve cone. If you plan on having a party, you can also get $5 off a 20+ cake.

The Body Shop

Joining The Body Shop’s, Love Your Body Club is free, and you get something special on your birthday. In addition, you’ll get sneak peeks at new products and invites to exclusive events held by The Body Shop.

Boston Pizza

When you sign up for MyBP by Boston Pizza, you’ll immediately get a coupon for a free starter. On the anniversary of signing up, you get an individual 2 topping pizza. If that wasn’t enough, you also get a free dessert on your birthday.

Chatime

Chatime Socitea (Chatime rewards) gives you a free birthday drink that’s automatically loaded to your account 7 days before your birthday. You would obviously need to register your birthday to get your free drink. This free drink is good for 7 days before and after your birthday. You must sign up for the rewards program to get your free drink.

Chick-Fil-A

Chick-Fil-A locations have been popping up all over the city. It’s quickly become a popular spot to get fried chicken sandwiches. Customers that sign up for the app/loyalty program get free food on their birthday. What you get depends on your loyalty tier. All can choose between a Chocolate Chunk Cookie or Chocolate Fudge Brownie. If you’re silver, you can choose a Small Milkshake, Small Frosted Lemonade, Small Frosted Coffee, Small Icedream Cone or Small Icedream Cup. Signature members get their choice of entrée.

Cora

One of the best places to get free birthday food in Toronto is Cora. Anyone who signs up for the newsletter should get a $5 off coupon on their birthday, but I noticed it’s no longer specifically mentioned on the website. I can confirm that if you join the Cora loyalty program, you can earn three times the points on your birthday. This offer is good for 30 days.

David’s Tea

Unfortunately, David’s Tea closed all of their retail locations during the pandemic, but they’re still giving out birthday freebies in Toronto and across the country. If you’ve joined their frequent STEEPER program, you’ll get 5 free points on your birthday. Note that you used to get a free cup of tea, but since David’s Tea no longer has physical locations, they’ve switched to free points. 

Denny’s

Birthday freebies in Toronto with the best value are found at Denny’s. If you dine in on your actual birthday and present a valid picture ID, you’ll get a free Grand Slam breakfast. That meal comes with eggs, bacon, sausage, hashbrowns, and pancakes. Note that you still have to pay the taxes and be sure to tip based on the regular price.

DQ

You can enjoy one of your free birthday meals at DQ (Dairy Queen) if you’re a Blizzard Fan Club member. On your birthday, you can get a free Blizzard when you purchase another Blizzard at the regular price. It’ll be tempting to get a large, but you’ll want to save room if you’re heading to more locations on this list.

Harvey’s

Harvey’s used to have one of the best free stuff on your birthday in the form of a burger, but they seem to have decreased the present in recent years. Harvey’s newsletter subscribers have reported that the special gift on your birthday is now just a free slice of pie when you purchase a burger. Not exactly the best deal on this list, but handy if you happen to be heading to Harvey’s.

The Keg Steakhouse + Bar

For those who want to have steak on their birthday, you may want to head to The Keg Steakhouse + Bar. When you purchase a meal at the regular price, you’ll get a free slice of their Billy Miner Pie. This is a dine-in only offer, but it doesn’t have to be on your exact birth date. Just let the server know that you’re celebrating your big day.

Kelseys

Kelseys is one of the few family restaurants that still offer a free birthday dessert. You do need to purchase a meal, so you can’t just show up expecting pie and ice cream. To get the offer, you do need to sign up for their newsletter. When you sign up, you’ll get a free appetizer coupon immediately and a $10 off coupon on your anniversary.

Kettleman’s Bagel

You can get free birthday stuff in Toronto at Kettleman’s Bagel which serves Montreal-style bagels. You’ll get a dozen bagels for free on your special day if you have downloaded the app.

KFC

Kentucky Fried Chicken, or KFC, as they like to be called now, gives anyone who has the app a free popcorn chicken coupon for their birthday. The offer is good for 30 days from your birthday so there’s no need to rush things.

Lone Star Texas Grill

Lone Star Texas Grill has two locations in the Greater Toronto area. There’s one by the airport and another one in Richmond Hill. If you’ve signed up for The Sizzle, you’ll get a free dessert on your birthday. The catch is, you need to spend at least $30 before taxes to get your deal. On a positive note, you also get unlimited chips and salsa.

Mandarin

Many people will say the best free birthday stuff is found at The Mandarin. That’s hard to argue since you’ll get your birthday buffet for free as long as you’re joined by three paying adults. You do need to need to sign up for the Mandarin Dish e-newsletter at least one day prior to your birthday to get the offer.

Marble Slab Creamery

It pays to sign up for Marble Mail since you’ll get access to some pretty sweet deals. The website is a bit vague and says you’ll get free sweet surprises on your birthday. In most cases, it’s been a buy one scoop, get a free scoop coupon. You need to sign up at least 48 hours before your birthday to get your deal.

Medieval Times

When you sign up for Medieval Times’ Birthday Club, you’ll get to dinner and a show for free when joined by at least one paying adult. Medieval Times has limited seating, so you’ll want to reserve your spots early.

Menchie’s

One of the more popular free birthday meals is found at Menchies. When you download the app and create a My Smileage account, you’ll get a $5 coupon to use on frozen yogurt on your birthday. That may sound like a big deal, but Menchie’s is self-service where you pay by weight so you can get your treat for free.

Montana’s

Another restaurant offering free birthday stuff in Toronto is Montana’s. They serve BBQ dishes (think ribs and chicken), and you can get a free dessert on your birthday. You need to sign up for the grill lovers club newsletter to get access to the offer.

New York Fries

For some reason, the NYF Fry Society loyalty program isn’t well known. I’m not sure why since you can earn points on every purchase, and you get free regular fries on your birthday. However, you need to spend at least $50 in the prior year to be eligible for the free fries.

Panera

For those looking to collect free birthday stuff in Toronto, you need to head to Panera bread since you can get a free pastry on your birthday. To get it, you need to be signed up for MyPanera Rewards, the loyalty program for Panera. The signup page doesn’t say you get something free, but people have reported that the coupon is still being sent out around their birthday.

Papa John’s

You would think Papa John’s would give you a slice of pizza as their free food on your birthday, but you actually get a free birthday cookie. This isn’t an individual cookie, it’s one of those ones they bake that’s the size of a small pizza. You get 14 days to claim your cookie and you need to have the Papa Rewards app and made a purchase in the last year.

Pizza Hut

Pizza Hut Hut Rewards collectors get free birthday stuff in Toronto. To be honest, it’s nothing special as most people have reported just getting free breadsticks. That said, some people have received a free dessert coupon. Usually, there’s no purchase necessary, so it could be worth stopping by if you have a location near you.

Perkins

Perkins only has two locations within the Greater Toronto Area. There’s one by The Toronto Congress Centre, and one out in Pickering. When you sign up for their newsletter, you’ll immediately get a 20% off coupon. The site also says you get a special gift for your birthday – a free Magnificent Seven (Two large eggs cooked to order, with three made-from-scratch buttermilk pancakes and choice of two bacon strips or sausage links).

Red Lobster

If you sign up for Red Lobster’s Fresh Catch News at least 10 days before your birthday, you’ll get a surprise birthday offer. Red Lobster recently removed the language from their website that says exactly what you’ll get, but when you sign up, you get a free appetizer or dessert coupon right away.

Sephora

Sephora Beauty Insiders get to pick a free birthday gift during their birthday month. Your free birthday surprise will change depending on the month in which your birthday falls. Fortunately, these free items are usually quite good and gives you an opportunity to try out new makeup and skincare products

Starbucks

Getting free stuff on your birthday in Toronto is easy at Starbucks. If you’re a member of Starbucks Rewards, you can get a free birthday drink. You have to claim your drink on your actual birthday, or the day after, but it’s well worth it since you can order an expensive drink and not have to pay anything.

South St. Burger

South St. Burger gives you a free burger for your birthday if you’re a member of their Birthday Club, but it comes with a few conditions. You need to subscribe at least 72 hours before your birthday and you must buy one burger to get one free. It’s a bit annoying that this deal is BOGO, but it’s still one of the better free birthday meals in Canada.

Swiss Chalet

If you have children that are 10 or under, Swiss Chalet is a great place to celebrate their birthdays since they can get a free Kid’s Meal. The only catch is that a paying adult must also be dining. Unfortunately, this deal is not available for take out order.

Tim Hortons

The Tim Hortons Rewards app has seen some improvements since it launched. Overall, the coupons are pretty decent, especially on your birthday where you can claim a free reward such as a drink or breakfast sandwich.

What A Bagel

If you really like bagels, you might as well make a trip to What A Bagel. You’ll get six free bagels when you purchase six on your birthday. Not a bad deal at all. Note that you need to show your ID when you make the purchase.

The Works

Finally, there’s The Works, that gives out some of the best. free birthday meals. If you sign up for the burgers with benefits club at least nine days before your birthday, you’ll get a free burger coupon. If you’ve never been to The Works, they’ve got some of the best burgers in the city.

If you’re going to be out of the city for your birthday, check out my free birthday stuff guides on Vancouver and Canada.

This guide cuts through the noise. You’ll learn how credit scores really work, how to kickstart your credit journey, and how to dodge the traps that wreck your financial reputation. Let’s turn your credit from invisible to impressive.

Understanding Credit in Canada

Credit bureaus in Canada (Equifax and TransUnion) use a numerical scoring system that tracks your borrowing and repayment behaviour. This score is determined by analyzing your credit habits and applying them to their internal algorithms. Having a good credit score is crucial because it demonstrates to lenders your level of financial responsibility.

What is A Credit Score

A credit score is a three-digit number ranging from 300 to 900 that represents your creditworthiness. In Canada, scores are calculated using information from your credit report combined with additional factors.

Credit score ranges include:

• 760-900: Excellent
• 725-759: Very Good
• 660-724: Good
• 560-659: Fair
• 300-559: Poor

Your credit score impacts your ability to get loans, credit cards, mortgages, and rental applications. Higher scores result in better interest rates and more favourable terms.

Note that the range of scores can be quite broad. Someone with a credit score of 775 is essentially on the same level as someone with a score of 885. While it’s important to maintain a good credit score, you shouldn’t obsess over it.

How Credit Works

Credit works as a system of trust between you and lenders. When you borrow money or use credit products, your payment behaviour is reported to credit bureaus on a monthly basis.

Key factors affecting your score:

• Payment history (35%): On-time payments boost your score
• Credit utilization (30%): Keep balances below 30% of limits
• Credit history length (15%): Older accounts improve your score
• Credit mix (10%): Different types of credit show responsibility
• New credit inquiries (10%): Too many applications can lower your score

Lenders review your credit report before approving applications. They examine your borrowing patterns, current debts, and repayment reliability to assess risk.

Types of Credit Products

Canada offers several credit products that help build your credit history when used responsibly.

Revolving Credit:

• Credit cards
• Lines of credit
• Home equity lines of credit (HELOCs)

Instalment Credit:

• Personal loans
• Auto loans
• Mortgages
• Student loans

Secured Credit Products:

• Secured credit cards (require a deposit)

Credit cards are the most accessible starting point for newcomers and young adults. Secured credit cards are a good option if you cannot initially qualify for traditional cards.

Each product type contributes differently to your credit mix. Having both revolving and installment credit demonstrates your ability to manage various financial responsibilities effectively.

Key Factors Affecting Credit Scores

Your credit score in Canada is calculated using five primary components that credit bureaus analyze from your credit history. Payment history carries the most weight at 35% of your score, while credit utilization accounts for 30%.

Payment History

Payment history is the most significant factor in calculating your credit score, making up 35% of the total. This part monitors whether you pay your bills on time and in full. Generally, a single missed payment won’t make a difference, but two consecutive missed payments or two in a 12-month period could significantly impact your credit score. These negative marks can substantially lower your score and can stay visible for up to six years.

Types of payments tracked include:

• Credit card minimum payments
• Loan payments (personal, auto, mortgage)
• Line of credit payments
• Utility bills reported to credit bureaus

Missing payments establish a pattern that lenders see as high risk. The more recent the missed payment, the stronger the negative effect. Multiple missed payments increase the damage and indicate financial trouble to potential lenders.

Credit Utilization

Credit utilization indicates the percentage of your available credit that you’re using. This factor accounts for 30% of your credit score and is the second most significant component.

Your utilization ratio is calculated by dividing your current credit card balances by your total credit limits. For example, if you have $2,000 in balances across cards with a total limit of $10,000, your ratio is 20%.

Optimal utilization guidelines:

• Keep total utilization below 30%
• Aim for individual card utilization under 30%
• Target utilization of 10% or less for best scores

Using more than 30% of your available credit indicates a heavy reliance and potential repayment risk, even if you consistently make minimum payments. Lenders take notice so keep your utilization ratio low. 

Length of Credit History

Credit history length makes up 15% of your score. It’s based on how long you’ve had credit and the average age of all accounts, including closed ones. Opening new accounts frequently can reduce your average account age. That’s why keeping older accounts open, even if they are unused, often benefits your credit score.

Key components measured:

• Age of oldest account
• Average age of all accounts
• Time since account activity

Closed accounts remain part of your credit history for up to 7 years before they are removed from your report. This offers some protection when you close older cards.

Students and newcomers to Canada naturally have shorter credit histories. Building this factor requires patience and consistent credit management over several years.

Recent Applications

Recent credit applications, also called hard inquiries, represent 10% of your credit score. Each application for new credit triggers a hard inquiry that appears on your credit report. Making multiple hard inquiries within a short period suggests you’re seeking credit urgently, which lenders don’t like.

Hard inquiries occur when you apply for:

• Credit cards
• Personal loans
• Auto loans
• Mortgages
• Lines of credit

Each hard inquiry typically reduces your score by 10  points. The impact diminishes over time. In other words, if you practice good credit habits, your credit score will rebound.

Credit Mix

Credit mix accounts for 10% of your credit score and examines the variety of credit types in your profile. Lenders prefer seeing that you can manage different forms of credit responsibly.

Common credit types include:

• Revolving credit (credit cards, lines of credit)
• Installment loans (mortgages, auto loans, personal loans)
• Retail accounts (store credit cards)

A mix of revolving and installment credit shows financial versatility, but it matters less than payment history or utilization. Don’t open accounts just to boost your mix. Stick to credit that fits your needs. A balanced profile builds naturally over time.

Steps to Start Building Credit

Building credit in Canada involves establishing financial products in your name and showing responsible payment behaviour. The three main methods include credit cards, cellular services, and loans, each providing different ways to build your credit history.

Applying for a Credit Card

Credit cards serve as the primary tool for establishing a credit history in Canada. Most major banks offer credit cards specifically designed for newcomers, students and those without existing credit.

Secured credit cards require an upfront deposit that typically matches your credit limit. If you deposit $500, your credit limit becomes $500. This deposit protects the lender while allowing you to build credit history. These are essential for people who can’t access traditional cards.

Getting a Cellular Service in Your Name

Cellphone plans impact your credit history when payments are reported to credit bureaus. Major Canadian providers like Bell, Rogers, and Telus report payment activity to Equifax and TransUnion.

Contract plans usually need credit checks and help build credit more effectively than prepaid options. Post-paid monthly billing establishes a consistent payment history when paid on time.

Opening a Loan

Small personal loans or lines of credit demonstrate your ability to manage installment debt. Credit unions often provide more flexible lending options for those establishing credit.

Personal loans require fixed monthly payments over set terms. Start with smaller amounts like $1,000 to $3,000. Use the funds for necessary purchases or place them in savings while making payments.

Smart Credit Management Practices

Effective credit management involves regular payment habits, strategic use of available credit, and consistent monitoring of your credit history. These practices directly impact your credit score and influence your access to future financial opportunities.

Making On-Time Payments

Payment history makes up 35% of your credit score. Missing payments can drop your score by 60–100 points. Set up automatic minimum payments to avoid late fees, and pay your full balance when possible to skip interest and show strong financial habits.

Key payment strategies:

• Schedule payments 2-3 days before due dates
• Use banking apps to set payment reminders
• Pay twice monthly to reduce average balances

Late payments remain on your credit report for six years in Canada. A single missed payment can affect your score for months.

Managing Credit Limits and Balances

Aim to keep credit usage below 30% per card. Once you’ve established a solid payment history, request annual credit limit increases. Higher limits result in lower utilization, even if your spending remains the same.

Utilization management tips:

• Pay down balances before statement dates
• Spread purchases across multiple cards
• Ask for limit increases every 6-12 months

Avoid closing old credit cards unless they carry annual fees. Keeping accounts open maintains your credit history length and available credit.

Monitoring Your Credit Report

Check your credit report from both Equifax Canada and TransUnion Canada annually. You can access free and paid reports through their official websites.

Look for errors in personal information, account details, and payment history. Dispute inaccuracies immediately as they can lower your score unfairly.

What to review monthly:

• Payment history accuracy
• Account balances and limits
• New accounts or inquiries
• Personal information updates

Think about signing up for credit monitoring services that notify you of any changes in your report. These services help you identify identity theft or errors on your report quickly.

Rebuilding Credit After Setbacks

Credit setbacks like missed payments and collections can lower your credit score, but recovery is possible through strategic actions. Secured credit cards offer a dependable way to show responsible credit use while you work on past issues.

Recovering from Missed Payments

Late payments remain on your credit report for six years in Canada. However, their impact decreases significantly after two years of consistent on-time payments.

Contact your creditors immediately when you realize you’ll miss or have missed a payment. Many lenders will be understanding and can work with you to find a solution that won’t affect your credit score.

If you’ve already missed payments, focus on these recovery steps:

• Make all future payments on time without exception
• Pay more than the minimum amount when possible
• Consider setting up automatic payments to avoid future delays
• Keep accounts open to maintain your credit history length

Dealing with Collections

If you’ve avoided making payments, your debt will eventually be sold off to a collections company. Collection accounts can reduce your credit score significantly and remain visible for six years from the original delinquency date.

If it gets to this points, you’ll need to negotiate with the collection agency to discuss payment options.

Consider these collection strategies:

• Verify the debt is legitimate by requesting validation
• Negotiate a settlement for less than the full amount
• Get all agreements in writing before making payments
• Keep records of all communications and payments

Never ignore collections. They won’t disappear and can lead to wage garnishment or legal action in severe cases.

Getting a Secured Credit Card

Secured credit cards require a cash deposit that becomes your credit limit. They’re specifically designed for people rebuilding credit after setbacks.

Some financial institutions offer secured cards with deposits ranging from $200 to $10,000. Your deposit is refundable when you close the account in good standing.

Key secured card benefits:

• Guaranteed approval regardless of credit history
• Lower fees than many unsecured cards for bad credit
• Graduation options to unsecured cards after 12-24 months

Use your secured card for small, regular purchases like gas or groceries. Pay the full balance monthly and never exceed 30% of your credit limit.

After six months of responsible use, your credit score should begin improving measurably.

Final thoughts

Building credit in Canada is essential if you ever need a loan in the future. Some employers and landlords may even ask you for your credit score, so it’s always best to maintain yours. By managing your credit responsibly, it should not be hard to get an excellent credit rating.

By learning how the program works and making informed choices, you can get the most value from your points and enjoy a more rewarding banking experience.

Avion Rewards points value

Avion Rewards points offer varying value depending on how you choose to redeem them, making it essential to consider your redemption options. Travel redemptions generally provide the highest value, with a base value of 1 cent per point when redeeming 1,000 points for $10 in travel. If you use the Air Travel Redemption Schedule, you may get up to 2.33 cents per point, which is significant if you want to maximize your rewards.

The value of your points also depends on the RBC card you hold. Avion points are more beneficial when earned through an RBC Avion card, such as the RBC Avion Visa Platinum, RBC Avion Visa Infinite, or RBC Avion Visa Infinite Privilege. With an RBC ION Visa card, travel redemptions cost 172 Avion points for every $1, which decreases the value to about 0.71 cents per point.

Here’s a quick reference table on redemption values:

When you redeem points for travel, especially flights, you often receive the best return on your Avion points. Other options, such as merchandise, financial rewards, and statement credits, offer lower value. You can check your current balance or browse redemption options at the Avion Rewards page.

One thing to note is that RBC Rewards and RBC Avion are slightly different. Even though many RBC credit cards allow you to earn RBC Rewards, you may not get the full benefits that come with RBC Avion credit cards.

With standard RBC Rewards points, you don’t get as many travel benefits/options. Since RBC Avion points are more valuable, you’ll want to hold one of the three RBC Avion cards, which are as follows:

• RBC Avion Visa Platinum
• RBC Avion Visa Infinite
• RBC Avion Visa Infinite Privilege

How to redeem RBC Avion points for travel

You can redeem your RBC Avion points for travel by signing in to the Avion Rewards portal or the Avion Rewards app. Your points are flexible and can be applied to flights, hotels, cruises, vacation packages, and car rentals. There are no blackout dates or seat restrictions for flights, and you can use points to cover the entire travel cost, including taxes and fees.

If you don’t have enough points for the full amount, you can pay the balance with your RBC Rewards credit card—no minimum redemption is required. All bookings must be made through the RBC portal or by calling the travel centre, though a $30 booking fee applies for phone reservations.

You can use your RBC Avion Rewards points for any seat on any flight, and there are no blackout periods or seat restrictions. Points can be used to pay the entire airfare price, including taxes. If you don’t have enough points to pay for the whole redemption, you can use as few points as you wish, since no minimum redemption is required. The remaining balance will be charged to your RBC Rewards credit card. Unfortunately, RBC Rewards can’t be applied to travel booked on your own.

RBC Avion Air Travel Redemption Schedule

With the RBC Avion Air Travel Redemption Schedule, you can redeem your Avion points for economy or business class flights at specified point levels. This program features a chart that details the points needed for specific destinations and establishes a maximum base fare for each redemption. You must possess the entire amount of points to complete a redemption, as partial redemptions are not permitted.

Below is an overview of the points required and maximum base fares for different destinations:

Flights booked using the schedule cover the base fare up to the maximum ticket price, but you are responsible for taxes, fees, and any carrier surcharges above the covered amount. If the total base fare exceeds the maximum for your redemption, you will need to pay the difference in cash.

Using the schedule often gets you a value of up to 2–2.33 cents per point, especially on costly routes like last-minute short-haul or long-haul flights to European destinations. For example, a flight from Canada to Europe can be booked for 65,000 Avion points plus taxes, fees, and carrier surcharges, provided the base fare is $1,300 or less. If the base fare is higher, you pay the difference.

There are no blackout dates, and all seats on all carriers are available, making the process flexible and straightforward. You are free to choose any carrier and book a seat for any available travel period without restrictions.

When considering redeeming your points, compare the value you get here to other options, such as transferring points to another program. Often, the predictable value and flexibility of the RBC Avion Air Travel Redemption Schedule make it attractive for high-cost or last-minute travel.

The RBC Air Travel Redemption Schedule and the ability to convert your RBC Rewards points to other loyalty programs is why I rank RBC Rewards ranks #2 on my list of Canada’s best bank travel rewards programs.

How to redeem Avion Rewards points for gift cards

You can use your Avion Rewards points to get gift cards from a range of merchants, including Amazon, Bath & Body Works, Beer Store, Best Buy, Air Canada, Fairmont Hotels & Resorts, Food Basics, and Golf Town. The number of points needed for each gift card and its value vary by retailer.

The value you get per point varies depending on the merchant. For example, Food Basics offers $100 for 14,000 points, which works out to about 0.71 cents per point. Travel-related gift cards, like Air Canada, tend to offer the best redemption value, typically around 1 cent per point.

To redeem your points, sign in at avionrewards.com or use the Avion Rewards app. Once logged in, browse the gift cards section, choose your preferred brand, and proceed to checkout.

Occasionally, Avion Rewards offers bonus promotions on select gift cards, such as 10% to 30% more value for the same number of points. These promotions can make some gift card offers more appealing. Always check for any current offers before redeeming.

How to redeem Avion Rewards points for financial rewards

support your saving goals or help pay down debt. Simply log in to your RBC Rewards account and select RBC Financial Rewards from the “Shop & Redeem” menu if you have eligible RBC financial products.

A minimum of 12,000 points is required to redeem $100 towards these financial options:

• Add to your existing investments (e.g., RRSP, TFSA)
• Make a mortgage payment
• Repay your line of credit

Using points for financial rewards can help you save on interest if you pay off loans or a line of credit sooner. Adding to investments like your RRSP may result in tax advantages, while using a TFSA allows you to save with tax-free growth.

Merchandise, statement credits, charitable donations, and other redemptions

You have the option to redeem your RBC Rewards points for merchandise, statement credits, and charitable donations. The merchandise catalogue includes a range of items, but the points required often make it a lower-value choice, except when discounts are occasionally offered.

For statement credits, 17,200 points equal a $100 credit, resulting in only .58 cents per point. This is one of the least valuable uses for your points compared to other redemption methods, such as travel or gift cards. Cash back is not offered directly, but the statement credit works similarly by reducing your balance.

Charitable donations are available, allowing you to support various causes using your points.

RBC Avion points transfer partners

RBC Avion points offer a variety of flexible transfer options for both travel and retail loyalty programs. This flexibility enables you to maximize the value of your points based on your travel or shopping plans. Below is a breakdown of the main transfer partners, transfer ratios, and brief descriptions.

It’s hard to put an exact value on airline miles since there are so many variables, but generally speaking, their value is around a minimum of 1.5¢ per mile for economy tickets. Often you can get double the value if you’re booking in business class. That said, WestJet Rewards points are worth about 1 cent each.

Transfers to Cathay Pacific Asia Miles and British Airways Avios are at a 1:1 ratio, which is favourable for international travel. American Airlines AAdvantage has a slightly different ratio but can still represent strong value, especially if you find good award seat availability.

Featured Benefits and Tips

• Promotions & Bonuses: RBC Rewards periodically offers transfer bonuses to select partners, sometimes increasing your conversion value by up to 30%. These bonuses typically apply to airline programs like WestJet, British Airways Avios, Cathay Pacific Asia Miles, and American Airlines AAdvantage. Check for these promos directly in your RBC Rewards account to maximize value.
• Combining with RBC WestJet Products: If you hold both an RBC Avion card and the RBC WestJet World Elite Mastercard, you can stack welcome bonuses and quickly accumulate WestJet points. Avion points can be transferred to WestJet at a clear fixed rate.
• Redemption Value: Airline miles fluctuate in value depending on route, class of service, and availability. On average, you might expect at least 1.5¢ per mile, and potentially much more for premium cabin bookings.

Avion Rewards expiration date

Your RBC Avion Rewards points do not expire as long as you maintain an eligible, active RBC Royal Bank credit card account. If you choose to close your credit card, you’ll have a 90-day period to redeem any remaining points before they are forfeited.

• Points don’t expire while your account is open and in good standing
• 90 days to use points after account closure

If you have questions about your points, it’s recommended to call RBC customer service for details or clarification.

How RBC Avion compares to others

RBC Avion Rewards stands out among major Canadian loyalty programs for its flexible redemption options, including no blackout dates and no minimum points required to redeem. You benefit from a fixed points flight program and regular promotions, which can improve your overall value.

The main limitation compared to American Express Membership Rewards is that you’re required to book travel through the RBC portal and it doesn’t have Aeroplan or Marriott Bonvoy as transfer partners. One major downside with RBC is that Avion cards don’t have strong earning rates compared to other banks. You can explore more with these links: CIBC Rewards, BMO Rewards, TD Rewards, Scene+, and American Express Membership Rewards.

How to earn RBC Avion Rewards

You can earn Avion points by using an eligible RBC Avion credit card for your everyday purchases. These cards allow you to accumulate points simply by making transactions, whether it’s groceries, gas, bill payments, or travel bookings. The range includes six personal credit cards (such as the RBC Visa Infinite Avion Card) and two business credit cards.

RBC Avion Visa Infinite Card

Apply now

• $120 annual fee
• 35,000 Avion points on approval
• 20,000 Avion points when spending $5,000 in the first 6 months
• 15,000 Avion points when keeping your account open until month 16
• Earn 1.25 Avion points for every $1 spent on travel purchases
• Earn 1 Avion point per $1 on all other purchases
• Comprehensive travel insurance
• Mobile device insurance up to $1,500

The sign up bonus for new cardholders is typically 35,000 -55,000 points which is comparable to some of the best travel credit cards in Canada.

The earn rate of 1.25 points per $1 spent on travel is decent, while the 1 RBC Reward point earned per dollar spent on all other purchases, including bill payments, is pretty common.

The RBC Visa Infinite Avion Card also provides good travel insurance when travelling outside Canada. Not only do you get travel medical, but you’ll also be covered for trip cancellation/interruption, delayed and lost baggage, hotel/motel burglary and more. Obviously, some exclusions apply, so read the certificate of insurance for complete terms.

Avion Rewards Retail Partners

You can also earn Avion points when shopping with select Avion Rewards retail partners. This includes making purchases through partner merchants online, in-store, or via the Avion Rewards app. Linking your RBC Avion credit card or debit card ensures you receive points automatically for eligible spending.

Ways to maximize earnings with retail partners:

• Shop through the Avion Rewards portal or app for special promotions and earning multipliers.
• Watch for limited-time offers, in which extra points are available on select categories like electronics, fashion, or travel bookings.
• Use Avion Rewards program tools, such as the rewards app and RBC online banking, to review participating partner offers and track transaction history.
• Combine points earned from credit cards with bonus points from partner promotions for faster accumulation.

Final thoughts

Avion Rewards is one of the best bank travel rewards programs. The RBC Visa Infinite Avion card may not give you the best signup bonus or have the highest earn rate, but there’s no denying that once you have the points, they’re easy to use. There are no blackout dates and no minimum points required to make a redemption, so you’ll never run into any issues using your points. If you’re a fan of RBC, check out my RBC InvestEase review and find out how you can reduce your investment management fees.

Frequently Asked Questions

How do I book travel with my Avion Rewards points?

You can book travel by logging into the Avion Rewards Travel portal. Once signed in, use your points to book flights, hotels, car rentals, and more.

How can I log into my Avion Rewards account?

To log into your account, visit the Avion Rewards website and click “Sign In.” You can also access your account through RBC Online Banking if your card is linked.

Are there special rewards for concerts like Taylor Swift’s?

Occasionally, Avion Rewards offers exclusive access or pre-sale opportunities for select concerts and live events, including popular artists. These offers are time-limited and are announced through the Avion Rewards website or member communications. Check the rewards platform regularly for the latest event rewards.

Where can I find the Avion Rewards catalogue for redemption?

The Avion Rewards catalogue is available online at the Avion Rewards website. Browse various redemption options, including merchandise, gift cards, and experiences. You need to sign in to view and redeem your points.

What is the phone number for Avion Rewards customer service?

You can reach Avion Rewards customer service at 1-800-769-2512. For additional support, you may also use the “Help” feature within your online account or the travel portal.

While you should always strive to pay the entire balance each month, it’s also important to understand how minimum payments work.

Credit card minimum payments are typically calculated as a percentage of your balance or a fixed amount, whichever is greater. The percentage required for the minimum payment differs per bank, but it’s typically 3 to 5%. 

Understanding this can help you make more informed decisions regarding your credit card payments and manage your finances better.

Understanding minimum payments

Minimum payments are the least amount you must pay on your credit card each month to maintain your account in good standing. They help you avoid late fees and negative impacts on your credit score, but they can lead to long-term interest charges.

How credit card minimum payments are calculated

Credit card minimum payments can be calculated in two main ways: percentage-based or flat rate. A percentage-based minimum payment is typically a small percentage of your total balance, often around 3-5%. This method includes interest charges, making it more responsive to your account balance.

For example, let’s say your credit card provider has a minimum payment of 2%. If your balance is $5,000 and your card has an interest rate of 21%, your minimum payment would be $100.

In most cases, your bank will also impose a minimum amount requirement, such as $10. They will charge you the greater of the percentage or the flat fee.

Credit card minimum payment calculators

A credit card minimum payment calculator is a handy tool offered by most banks that helps you estimate how long it will take to pay off your credit card balance if you only make minimum payments. It enhances your understanding of the impact of interest over time and can motivate you to pay more than the minimum to reduce your debt faster.

To use this tool, input key details such as your balance, interest rate, and minimum payment. The calculator will then provide insights into the total interest you’ll pay and the time needed to reach a zero balance. 

What happens if you only make minimum payments

Making just the minimum payment on your credit card can lead to significant long-term financial consequences. This strategy often results in much higher interest charges and can adversely affect your credit utilization ratio – which could impact your credit score negatively.

Long-term financial implications

Paying only the minimum required amount each month can keep your credit card debt lingering for years. For example, with a balance of $5,000 and an interest rate of 21%, it could take up to nine years to clear the debt. Throughout this period, the slow repayment hinders your ability to invest or save money, affecting your overall financial health.

Long repayment periods also increase the total interest paid. Typically, minimum payments are determined by a fixed amount or a small percentage of your balance, such as 3%. As your principal gradually decreases, most of your monthly payments go toward interest instead of reducing the principal.

Interest charges and credit utilization

Credit card interest rates can be quite high, typically ranging from 20% to 22%. Paying only the minimum guarantees that high interest charges accumulate over time. These charges significantly increase the amount you owe. For instance, a $10,000 balance at a 22% interest rate may accrue hundreds of dollars in interest charges each year.

Credit utilization refers to the percentage of your available credit that you are using. A high utilization ratio can negatively impact your credit score. Keeping a high balance relative to your credit limit because you’re making only minimum payments can signal to lenders that you might be overextended.

Paying off the entire balance on your credit card each month ensures you’re not paying any interest charges and you’re maintaining a healthy credit history.

Strategies to avoid minimum payment traps

Making just the minimum payment on your credit card can result in significant debt over time. Here are some effective strategies to avoid these pitfalls:

• Pay more than the minimum: Try to pay more than the minimum amount every month. Even a small increase in your payment can greatly reduce the interest accrued and shorten the repayment period.
• Set up automatic payments:  Automate your credit card payments to ensure you never miss a payment. Set it up so that you pay the full amount or more than the minimum amount each month.
• Create a budget:  Create a monthly budget that focuses on debt repayment. By doing this, you can allocate more funds toward paying off your credit card balance and lessen dependence on minimum payments payments.
• Build an emergency fund: Save three to six months’ worth of expenses in an emergency fund. This buffer helps you manage unexpected costs without relying on credit cards.
• Limit additional spending: Avoid adding new purchases to your credit card until the balance is more manageable. This helps you stay focused on reducing existing debt debt.
• Explore balance transfer options: Think about transferring your balance to a card that offers a lower interest rate. This can help decrease the interest you pay and enable you to pay off the debt more quickly.

Frequently Asked Questions

How is the minimum payment calculated on credit card balances?

The minimum payment is usually either a percentage of your balance or a fixed amount, typically around $10, whichever is greater. Always check your credit card statement for the specific method used by your issuer.

Does making only the minimum payment on a credit card cause interest charges?

Yes, making just the minimum payment allows interest to keep accruing on the remaining balance. This can greatly increase the total amount you ultimately pay over time. To prevent excessive interest charges, it’s wise to pay more than the minimum whenever possible.

What are the consequences of only paying the minimum on credit cards?

Making only the minimum payment can result in significant interest costs and prolong the time it takes to pay off your debt. It also raises the risk of accumulating a larger balance, which could make future payments more challenging to manage. 

Does consistently making minimum payments on a credit card impact credit scores?

Yes, consistently making minimum payments can affect your credit score. Although making at least the minimum payment on time helps maintain a positive payment history and avoids late fees, high balances and prolonged debt can negatively impact your credit utilization ratio. 

Determining the ideal number of credit cards

The right number of credit cards for you depends on your financial habits, goals, and credit management skills. 

First, assess your credit score and monthly spending. A strong credit score and a history of on-time payments suggest that you can effectively manage multiple cards. Conversely, if your credit is less than ideal or you find it challenging to keep up with payments, fewer cards may be beneficial.

1-2 Cards

• Simplicity: If minimalism suits your lifestyle, one or two cards make it easier to track expenses and payments. Generally, you want two different card types, such as one Visa and one Mastercard. With this strategy, you’ll likely always have a card that will work at merchants. 
• For building credit: Starting with a single card is the way to go if you’re new to credit or rebuilding. For some people, you may be forced into getting a secured credit card to build/rebuild credit. Once your score increases, you could add a second card for access to more credit and a healthy credit mix.

3-5 Cards

• Maximizing rewards: Having 3-5 cards can optimize rewards and benefits. For example, you could have the American Express Cobalt as your daily spending card, the TD Aeroplan Visa Infinite for free Air Canada checked bags, and the Triangle World Elite Mastercard for free roadside assistance.
• Welcome bonuses: The quickest way to earn points is by applying for new cards that have generous welcome offers. If you can manage your money well, applying for two new cards a year isn’t unusual.
• Credit Utilization: More cards can lead to a lower credit utilization ratio as long as you maintain low balances, positively affecting your credit score. Yes, you could just increase the limit on one card, but having multiple cards is still beneficial if some have no annual fees and good benefits.

The key thing to understand is that every credit card you have should have a purpose. If it doesn’t have a specific purpose, cancel it.

Strategies for managing multiple cards

Effectively managing multiple credit cards requires a focused approach to optimizing rewards, tracking payments, and avoiding debt. The following strategies will help you handle multiple cards.

Optimizing credit card use

To maximize the benefits from credit card rewards, choose the right card for the right purchase. For example, if you have a card offering 5% cash back on gas and another offering only 2%, always use the former to fuel your vehicle. Here’s a simple breakdown of how to allocate card usage:

• Gas purchases: Card with the highest rewards or cash back on fuel.
• Grocery shopping: Card with the highest points on grocery spending.
• Travel expenses: Card with a high earn rate on travel or one with no foreign transaction fees.

Note that if you’re working on a welcome bonus, it often makes sense to put all your spending on that card, regardless of category, to ensure you meet the minimum spending requirement.

Keeping track of payments and due dates

Keeping track of your payments is critical to avoid interest charges and maintain a good credit score. Consider these tips:

• Set up automatic payments so never miss a due date. 
• Always opt to pay the full amount due so you don’t incur interest charges.
• Utilize calendar alerts to remind you when manual payments are due.

Avoiding common pitfalls of multiple cards

While having multiple credit cards is fine, there are still a few things you need to watch for:

• Spending just for the sake of rewards: The rewards you earn will never be worth more than the interest you pay.
• Forgetting to cancel cards: If you’ve signed up for a card just for the welcome bonus, don’t forget to set an alert to cancel it before the next annual fee posts.
• Losing cards: Ensure you have all your cards in a secure place to access them anytime.
• Ignoring benefits: Some cards come with yearly benefits. Use them to maximize the value of your cards.

By implementing these strategies, you can navigate multiple credit cards effectively.

Building your credit score

Regardless of how many credit cards you have, you can use them to build and maintain a strong credit score. Each card affects your credit utilization, payment history, and credit mix so take steps to ensure you have a healthy credit history.

How Credit Cards Impact Your Credit Score

• Credit utilization: Your credit score is significantly influenced by your credit utilization ratio, which is the amount of credit you’ve used compared to your total credit limit. A good credit score requires keeping this ratio below 30%.
• Payment history: Timely payments are crucial, making up 35% of your credit score. Missed or late payments can considerably lower your score.
• Length of credit history: The age of your credit accounts matters. A longer credit history can contribute to a higher score. Hence, keeping older accounts open might be beneficial even if you’re not using them frequently.
• New credit inquiries: When you apply for a new card, a hard inquiry is triggered, which can temporarily reduce your score. Too many hard inquiries in a short time are seen as risky behaviour by lenders.
• Credit mix: Having various credit types, including credit cards, automobile loans, and mortgages, shows lenders you can manage different types of credit.

Tips to Improve Your Credit Score

• Monitor and manage your balances: Always keep track of your spending to ensure you stay well below your credit limits, which helps maintain a low credit utilization ratio.
• Set payment reminders: Pay your bills on time consistently. Automatic payments or calendar reminders can prevent late payments and their potential negative impact on your score.
• Limit new credit applications: Apply for new credit only when necessary. This will limit hard inquiries and prevent your credit history from being comprised of too many new accounts.
• Review your credit reports regularly: Check your credit reports annually for errors and dispute any inaccuracies. Errors can affect your credit score, and you have the right to correct them.
• Be Patient: Building a good credit score doesn’t happen overnight. Continue practicing good credit habits, and over time, you’ll see improvements.

Understanding credit card rewards and fees

Applying for the right number of credit cards involves balancing the benefits of rewards with the cost of annual fees. If you’re getting more value out of the welcome bonus or annual benefits compared to the yearly fee, then getting the card is worth it.

When to Apply for Another Credit Card

Consider applying for another credit card if your current cards do not maximize the rewards on your typical spending categories or if you’re not reaching your financial objectives. You should also consider the yearly benefits you’re getting.

Types of rewards earned

Rewards vary widely, including:

• Cash back rewards: You can earn a percentage of your purchases back as cash. For example, a card may offer 0.5% to 3% cash back on specific or general purchases.
• Points: Accumulate points for each dollar spent, which you can redeem for travel, gift cards, or merchandise.

Rewards are sometimes higher in specific spending categories, like dining or travel, so it’s common for people to have specific cards for certain purchases.

Assessing annual fees

The annual fees for credit cards must be justified by the benefits received. Fees for basic cards start at around $50 and go up to $799 for premium cards with extensive perks. 

Some people are highly against annual fees, but they can be worth it. Consider the following:

• Perks vs. fees: Compare the benefits, such as airport lounge access, credits, and insurance, to the yearly cost.
• Break-even point: Calculate how much you need to spend to recoup the annual fee through rewards. For example, with a $100 fee and a 2% cash back rate, you’d need to spend $5,000 annually just to break even

Final thoughts

Determining the right number of credit cards is a personal decision. At the very least, you should have two cards: one as your main credit card and another as a backup. That said, there’s nothing wrong with having three to five cards, or even more. As long as you manage the cards well and don’t overspend, you’ll be fine. 

Life insurance is designed to protect your family if you die and your income disappears. Obviously, you don’t want them to struggle financially if the unthinkable were to happen which is why life insurance is the perfect solution.

There’s just one problem, you’re likely paying more bills than you ever have in your life at this time, so the thought of adding yet another monthly expense to your budget can give you a serious headache.

Well, the good news is that there’s a type of coverage that gives your family the financial protection they need without breaking the bank: term life insurance.

In this article, I’m going explain what term life insurance is, who should buy it, how much it costs, and how to get coverage.

What is term life insurance?

So, what is term life insurance? A term life insurance policy protects your family financially for a set period of time. 10, 20, and 30 years are the most common term lengths. You select the amount you want to be covered for and the number of years you want it to last for when you buy the policy.

If you die while your policy is active, your beneficiary will get a tax-free death benefit that’s equal to your policy coverage amount. So if your coverage amount is $500,000 and you die while holding your policy, your beneficiary will get a tax-free lump sum payment of $500,000. If you die after your policy expires, your insurer won’t pay anything which is why you want to make sure you have the right coverage.

Once you buy a term insurance, your premiums payments and coverage amount will be locked in for your entire policy term. This means that even if you develop a serious health condition or become an avid scuba diver during your policy term, you won’t have to pay more in premiums.

What’s the difference between term and whole life insurance?

You now know what term life insurance is, but what about whole life insurance? Whole life insurance is a type of permanent life insurance. This means that the permanent policy lasts for the rest of your life. And your insurer will have to cough up money to pay your death benefit when you die (no matter when this ends up happening).

Whole life insurance may seem tempting because it protects your family for the rest of your life and includes a cash value. But because your insurer will definitely have to pay your death benefit at some point, whole life insurance policies tend to be much more expensive than term life insurance policies. If you don’t actually need coverage for the rest of your life, which many people don’t, you’ll spend years padding your insurer’s pockets for no reason.

Instead of getting a permanent life policy, most people go with term life insurance and invest the difference. Here’s a detailed breakdown of the two.

Term life insurance vs universal life 

Universal life insurance is another type of permanent life insurance policy. Similar to whole life insurance, you can borrow against the cash value of your policy. The biggest difference is that universal life insurance policies are more flexible when it comes to premiums and death benefits.

When you compare term life insurance with universal life insurance, they’re basically two different products. Term life insurance covers you for a specific period of time, whereas universal life policies are a permanent insurance policy. Your life insurance rates will most likely be more with universal life, as opposed to term life.

What happens when term life insurance expires?

We mentioned that term life insurance lasts for the length of time you select when you buy your policy. So at some point, it’ll expire like the milk sitting in your fridge (just not that quickly). But what exactly happens when you policy term ends?

When your term life insurance policy is close to expiry, you’ll have two options: you can let it expire or you can renew it. You might let your policy expire if you don’t need coverage anymore or if it makes more sense to continue getting coverage by applying for a new policy altogether. In comparison, you might decide to renew your policy if your family still needs financial protection and sticking with the same policy seems like the best bet.

Keep in mind that if you renew your policy, you’ll probably end up paying a higher rate for it. After all, when you renew your policy, you’ll be older than you were when you first bought it. Because being older makes you riskier to insure, your insurance company will compensate for this higher risk by charging you more for coverage. Unfortunately, there’s no senior’s discount on life insurance!

Who should get term life insurance?

Term life insurance might be right for you if you need coverage for a certain number of years only, such as when you have financially dependent kids or a mortgage. Because you get to choose your policy term when you buy term life insurance, you can pay for coverage only during the years when your family would be in a bind if you died.

With term life insurance, there’s only a chance that you’ll die while holding your policy and your insurer will have to pay up. As a result, term life insurance is appealing to people who are looking for “cheap” coverage.

Even if you know that whole life insurance is the right choice for you, getting term life insurance now might be a good temporary solution. Most term life policies can be converted to a whole life policy down the road. So you can always start with term life insurance now and convert it to whole life insurance when your wallet isn’t still bleeding from the down payment you just put on a home.

What coverage amount and policy term should you choose?

The coverage amount and policy length that’s right for your particular family depends on your needs and financial obligations. In general, most people buy a policy that covers the expenses they’d pay to support their family until their mortgage is paid off and their kids are out of the home. For example, my wife and I got $500,00 in coverage with a term of 20 years.

However, if you have a child with special needs or want to help support an aging parent with long-term care, you might need a policy with a higher payout and longer term length

How much does term life insurance cost?

The amount you can expect to pay for term life insurance depends on a few key factors. These factors determine how much your insurer would have to pay if you died or how likely it actually is that you would die while holding your policy. In other words, they tell your insurer how risky you are to them and how likely it is that they’d have to pay up on your policy.

These are the key factors that determine how much your monthly premiums would cost:

• Coverage amount: The more you want to be covered for, the higher your premiums will be.
• Policy length: The longer you want coverage for, the higher your premiums will be.
• Age: You’ll pay higher premiums if you apply for a policy when you’re older vs. younger.
• Gender: If you’re a male, you’ll likely die earlier compared to a female. As a result, males will pay higher premium payments.
• Health: You’ll pay higher premiums if you have a health condition that raises your risk of dying early.
• Smoking status: Smokers pay higher premiums than non-smokers do.

For example, if you’re a healthy non-smoker, a $250,000 20-year policy might cost you $24.77/month if you’re 35 years old when you buy the policy. However, the same policy might cost you $55.20/month if you’re 45 years old when you buy it. That’s more than double the price!

What’s the best life insurance company?

It’s not fair to say that one life insurance company is better than the other as there are many insurers in Canada that offer excellent term life insurance policies. That said, there are a few things you should focus on when you’re considering a term life insurance policy from a specific company.

Financial health

You want to know that if you die at any point during your policy, your insurer will still be around to pay your death benefit. Fortunately, in Canada, the insurance industry is tightly regulated. As a result, most insurance companies are very stable financially, so you don’t need to worry too much about choosing an insurer that’s secretly about to go under.

E-applications

Submitting a paper life insurance application can increase your application’s processing time by a mind-boggling 6–8 weeks. That’s why choosing an insurer that accepts e-applications may be a good idea

Price

It’s natural to think that if one insurer offers a lower rate for a policy than everyone else, they must have something sketchy going on. The reality is that a lower price usually just means that the company is pricing the policy more competitively to win you over as a customer. There’s nothing wrong with going with an insurance provider with the lowest rates.

In case you want to learn more about the top Canadian life insurance companies, PolicyMe has reviews so you can get more information.

How to buy term life insurance?

If you’re already stretched thin these days, you might worry that buying life insurance will be a complicated process that you don’t have time for. But in reality, getting coverage is usually easier than you think.

Here’s how the process works:

1. You get quotes for a policy from an insurer or independent broker
2. You choose a quote and fill out an application
3. Your insurer collects information about your health and lifestyle (medical exams may be required)
4. You get approved for the policy

But, although you probably know you need life insurance, you may be struggling to figure out what kind of life insurance to get and how much you need.

How much life insurance do I need?

How much life insurance you need depends on various factors. How much you need will likely differ from others. If you’re trying to figure out an exact number, consider the following:

Start with your net income

Take your annual net income (or after-tax income) and multiply it by the number of years you’d like to be able to replace that income if anything should happen to you. As a rule of thumb, you should probably be able to provide a minimum of five to seven years of annual income to your beneficiaries.

Ask yourself who relies on you?

Ask yourself the following questions: Do you have a partner or spouse? Children? If so, how old are they and how many do you have? What are your dreams for their future? For example, do you want them to have the opportunity to attend university or college? Do you want them to remain in the same home? Is it important to you that your family continues to enjoy life’s little pleasures, such as yearly family vacations? The more people who depend on you, the more coverage you need.

Don’t discount non-monetary contributions

If you are not the main breadwinner in the family, you may believe only your spouse needs to have life insurance. But, consider this: if you are the primary caregiver for your children or other dependents, your labour would have to be replaced if you died. Ask yourself how much it would cost your spouse in childcare, housekeeping services and meal prep if you weren’t around. Then insure accordingly.

Tally your debts

Do you have a hefty mortgage, a lingering student loan, car loans or credit card bills? If so, tally them up. You will want to ensure your spouse or partner can pay off those debts if you die. Having cash to pay off the mortgage could ensure your spouse can keep your children in their home rather than selling it.

Subtract any life insurance you already have

Many people have mortgage life insurance or get some group insurance coverage through work (often worth one to three times their annual salary). If you’re not sure whether or how much life insurance you have through work, talk to your HR department. Then subtract that sum from the total amount of life insurance you need.  

Subtract your savings and investments

If you have sizeable savings and investments, you may need less insurance. For example, let’s say you have $200,000 in a high-interest savings account. Since that amount is liquid, your loved ones will already have funds to draw upon if you were to suddenly pass.

Life insurance example

If you’re still feeling baffled, take the following example as your model and do your own calculation. Let’s say you are a couple aged 35 and 36. You both work, and you have two children. Your four main life insurance goals include the following:

• Goal #1: You want to have $10,000 set aside for a funeral in the event one partner should die.
• Goal #2: You want to be able to pay off your $400,000 mortgage.
• Goal #3:  You want to be able to cover post-secondary education for your two children when the time comes.
• Goal #4: You want to be able to replace $70,000 in annual after-tax income for seven years.

What assets do you already have? In this case, we will assume that you have:

• $100,000 in life insurance through your workplace
• $30,000 in shared RRSP savings

What is the coverage shortfall? Your total life insurance needs would be approximately $973,000. If you subtract the $130,000 in assets you already have, you’re left with a coverage shortfall of about $843,000. At the bare minimum, you’ll want to get coverage for that amount, but some people may want more.

What is life insurance?

Think of life insurance as a way to protect your family’s financial security. You pay a monthly premium, with the guarantee that, if you die, your family will receive a one-time cash payment to help them with the cost of living and raising a family.

When you take out a policy, you and your insurer agree on the amount of the premiums owing (your monthly payments), the time frame of the agreement (how long you will be covered), and the amount of pay-out in the event of your death.

You can get optional riders that adjust coverage to fit your needs. For example, you might choose a rider that lets you defer paying premiums if you become disabled, or that gives you more coverage later in life without a medical exam.

Term life insurance

Term life insurance is the simplest form of life insurance and often the most cost-effective for young families. Basically, you agree to pay premiums for a specific term (usually 10, 15 or 20 years). The insurer agrees to pay out a lump sum if you die before the term is up.

Term life premiums are based on three things: your age, health, and life expectancy. In some cases, you may have to undergo a medical exam. Term policies are usually the cheapest way to get a lot of life insurance coverage, but they tend to go up in cost as you age.

Whole life insurance

Whole life (or universal insurance) combines insurance coverage with a savings vehicle. The monthly premiums are higher, but the policy is meant to be renewed for as long as you live, and it grows in value as time goes on. As a policyholder, you can make withdrawals from the policy for any purpose.

On the plus side, over time, the cash value growth in your policy may be enough to cover your premiums. There are also several tax benefits to whole life policies, such as tax-deferred cash value growth and tax-free access to the cash portion.

On the minus side, whole life carries higher monthly premiums and the growth rate of the policy’s cash value generally doesn’t compare well to investments such as mutual funds and exchange-traded funds (ETFs). Administrative fees can also cut into the rate of return. As a rule of thumb, most advisors suggest buying term insurance and investing the difference.

When should I get life insurance?

There’s no hard and fast rule, but most people begin to think about getting life insurance when their lives change and they realize others are counting on them financially. The most common include:

• When you’ve just tied the knot – You owe it to your spouse to think about what would happen if one of you should die. If you own nothing and have no children, this is probably less crucial, but if you are the sole breadwinner or have taken on debts and other financial burdens, you need to think about what would happen if you were gone.
• When you’ve just become a parent – For many people, the helpless heft of a newborn in their arms becomes the impetus for taking out a life insurance policy. Life insurance helps provide for your children in case something happens to you.
• When you’ve just become a home-owner – For many Canadians, a home is the biggest and most expensive asset they will ever own. Life insurance can help your family pay off the mortgage if you die.
• You’ve just started a business – If you’ve started a business with one or more partners, life insurance is a must. It can allow the surviving partner to help pay off debt, carry overhead expenses and pay for your replacement. 

How much does life insurance cost?

The short answer: life insurance doesn’t have to cost the earth. The average cost of life insurance per month in Canada ranges from $15 to $100, according to PolicyMe, an online vendor of life insurance. The cost varies according to your age, gender, health and the type of policy you have. Here are a few examples of the cost of term life insurance:

• For ages 40 and under – The average monthly cost of term life insurance in Canada for those aged 40 and under was $26.55 for $500,000 coverage and a 10-year term.
• For all ages – The average cost of term life insurance in Canada was around $34 a month or $380 per year in 2023, according to industry-wide data.
• For smokers – Life insurance for smokers costs more, at $79.91 per month for a male and $57.72 for a female.

The cost of whole life insurance is more expensive. On average, whole life insurance costs $291.05 monthly for males and $337 for females.

Any person with dependents should strive to protect their family. That’s why talking about life insurance and getting it is so important. Here’s what you need to know to get started with life insurance. 

What is life insurance?

In simple terms, life insurance is an agreement between an individual and an insurance agency in which the individual will pay monthly or annual payments to the insurance provider, who, upon the death of the individual, will pay a lump sum to the beneficiaries of the individual.  

Types of life insurance

Life insurance isn’t a one-type-fits-all kind of product. There are a few different categories depending on your lifestyle and circumstances. Here is a look at three of the most popular life insurance options for Canadians.

Term life insurance 

Term life insurance is purchased for a term or a specified period of time, usually 10 or 20 years. During this time, you will pay the premiums, and should you die within the period of this term, your insurance provider will pay out a death benefit to your beneficiaries.  

Term life insurance policies are quite popular because of their affordability. There are no hidden fees or restrictions, and it can be cancelled before expiry without penalty. However, some term policies need to be renewed once the term is over, and at this point, costs will increase due to age (life expectancy), health, and overall life circumstances. To get around this, you could get a renewable policy.

Whole life insurance

Whole life insurance, on the other hand, is a type of permanent insurance that provides coverage for the entirety of your life. Like with term life insurance, whole life policies include a death benefit, but additionally, it also has a cash surrender value should you need to cancel the policy early. Obviously, this is not an ideal situation, however, sometimes life circumstances come up where you need the money, and with a whole life insurance policy, some of that money can be made available through the cash value.  

Whole life insurance can offer this cash surrender value because in the early years, when you are (assumedly) young and at your healthiest, you will actually overpay. This overpayment is what forms the cash surrender value should you decide to claim it. Then, as you age, your premium payments actually end up being less than your insurance, so you underpay rather than overpay, and the insurance company takes the money from the cash surrender to make up the difference. This structure means your premiums stay the same every year. 

Note that whole life insurance is often referred to as a universal life insurance policy.

No medical life insurance

When it comes to getting life insurance, you will need to get a medical exam. Your age, health, and medical history all play a large role in the premiums you pay for health insurance, and if your health is in poor standing, you may not qualify with some life insurance providers.

In this case, you will want to look to no medical life insurance (also called guaranteed life insurance). This type of life insurance does not require any medical details, checks, questionnaires, or exams. It is worth noting that typically, no medical life insurance has higher premiums and lower coverage, so make sure to do your research before choosing this route. 

What is the best type of insurance?

The best type of insurance to get depends on your personal circumstances. Most life insurance purchasers stick with term insurance. It’s the more affordable option and can be tailored as your needs change with each new term. 

Typically, whole life insurance is only recommended to individuals with very high incomes to better take advantage of tax-deferred benefits. Generally speaking, the premiums are too high for the average Canadian to be worth it.

That said, every individual has their own circumstances, so take the time to learn more, do the research, and have discussions before you decide on the best type of life insurance for you.

When should you get life insurance?

Not everyone needs life insurance. If you are single and don’t have anyone relying on you and your income, then chances are you really don’t need it. However, if you have a young family or any parents or siblings that you take care of or help out financially, then life insurance might be a good idea.

That being said, even if you have dependents, there are still a few things to consider. These include:

• Debt vs assets – Do you have a lot of debt that would then be a burden to your family should you pass away? Or are you in a strong financial standing that they will be able to get by fine with the assets you have in place?
• The age of your children – Life insurance makes sense when you have little ones to care for but if your children are grown and have jobs of their own, then they likely don’t depend on you financially anymore. 
• Your partner’s circumstances – Will your partner be able to support themselves alone in retirement? If not, life insurance can help build their post-retirement savings.
• Do you care for anyone who needs lifelong assistance – If yes, then life insurance can act as a security blanket to continue to support them. 

How much life insurance do I need?

If you choose to go ahead and get life insurance you will need to figure out how much you need. There is no perfect number, it will depend on individual circumstances and can also fluctuate depending on where you are in your life. 

A general rule of thumb is 5-7 times your annual salary is a good start, but there are several factors to consider:

• The remaining balance owed on your mortgage
• Any personal debts or loans
• Expenses (burial costs and  funeral expenses or even the potential of long-term care)
• How much of your income do your beneficiaries rely on?
• How many years your beneficiaries will need financial support for
• Any other assets or funds you have in place that your beneficiaries will benefit from

How much does life insurance cost?

The cost of life insurance is personalized, and age plays a large role. That said, according to PolicyMe, the average cost of life insurance in 2022 for a healthy 30-year-old looking at a 10-year term is $13 per month for $100,000 in coverage. That same coverage would cost over $100 per month if you were a 60-year-old smoker. 

What affects life insurance premiums

Life insurance premiums are determined on a per-person basis. As mentioned above, most life insurance policies require a medical exam and/or questionnaire ahead of time to help determine these rates. Some of the things that will play a role in determining your life insurance premiums include:

• Age
• Gender
• Health condition
• Lifestyle and hobbies
• Occupation 
• The coverage amount 

How to get life insurance

There are a number of life insurance providers out there, which means that there are many options. You will want to shop around for life insurance quotes to determine the best rates and life insurance products that best align with what you want and what you can afford. You can go to a life insurance company directly for a quote or use a broker who will get quotes for you. Online brokers are especially easy to use, as you can get quotes within seconds. 

When you have determined which provider you would like to go with and are ready to apply, make sure you have the following on hand:

• Some form of identification (SIN, driver’s licence, passport, etc)
• Proof of income (paystub or a letter of employment
• Proof of address (from a bill or letter from your landlord)

The reality is that raising children in Canada has become difficult for many middle-income families. That’s because the cost of living in many cities has become insanely expensive. In fact, your rent or mortgage will often be your largest expense.

The idea behind this post is to give you an average cost of what you’ll spend as a new parent in Canada. That said, if you’re American, many of the rough estimates will also apply. Regardless of if you’re a new parent or thinking about having a child, here are some of the costs to consider when raising a child.

Housing costs

When budgeting for a baby, many people forget to consider housing costs. It doesn’t matter if you’re renting or have mortgage payments; your childcare costs can be significant based on where you live. Major cities such as Toronto and Vancouver have high rent and housing costs. If you live in rural areas or smaller cities, your housing costs may drop, but then you may spend more in other areas.

The cost of housing will always be a concern. Families that grow may require more space, which typically means higher costs. Plus, moving can be expensive. You’d also have to spend more on utilities.

Maternity employment insurance

Maternity leave in Canada covers up to 15 weeks. You can take this paid leave during your pregnancy or after you give birth. After your maternity benefits run out, you can take standard parental leave up to an additional 40 weeks or 69 weeks for extended parental leave. During this time your employer must save your position, and if you’re lucky, they’ll offer some kind of top-up, but if not, maternity employment insurance will help you get by. Employment insurance is meant to replace 55% of your weekly earnings up to a maximum of $650 a week.

Those taking extended leave only get an income replacement of 33% up to a maximum of $390 a week. You’ll hit the cap if your salary is $61,500 or more. To make matters worse, the income is taxable.

Most couples choose to take the leave one after the other, but you could take it simultaneously if you wanted. Whoever has the better top-up benefits should take more time off, but try telling that to the woman who just carried and delivered a baby.

Start-up costs

New parents typically spend a lot when their first child arrives. The cost of a child will vary by family, but some expenses to factor in include:

• Car seat
• Crib
• Formula
• Stroller
• High chair
• Childcare expenses
• Diapers

Even when your kids get out of daycare and diapers, there will still be many expenses that come out. You’ll have to pay for things such as school supplies, extracurricular activities, summer camps, braces, personal care, uninsured healthcare, and more.

The cost of raising children is expensive, but it’s not like you need to accept the price tag of everything you see. Many things can be bought second-hand, which helps reduce the cost of raising kids. Trust me, newborns will not care if their clothes are new or gently used.

Also, if you keep your kids’ stuff in good condition, you can resell them later. That will reduce your total cost overall.

Child care costs

Where you live will determine your daycare costs. Licensed daycare in major cities can cost up to $2,000 a month. Unlicensed home care is a cheaper solution and is worth checking out. Note that some daycares will charge more based on your child’s age. Regardless of which route you decide on, there are limited spots, so put your child’s name on a waiting list as soon as they are born (if not earlier).

With the cost of child care so high, it might even make sense for one parent to stay home for an extended period. MoneySense has a great article on how to find and pay for child care. My wife and I checked out close to a dozen daycares before settling on one that made the most sense for us. We were fortunate that our first choice had availability when we needed it.

In Canada, there is $10-a-day daycare available, but not every childcare facility offers it. As you can imagine, the ones that do have a very long waitlist. 

Other considerations include nannies and private schools. Nannies can live with you, but that will cost more. Private schools often provide before and after-school care as part of your annual expenses. No matter what you settle on, the cost of childcare will add up.

Life insurance

Once you have dependents, life insurance for Canadians is an absolute must. Our children depend on our income to get by, so having a policy will leave them with enough money to get by until they become self-dependent adults.

If you’re young and healthy, term life insurance is affordable at roughly $25-40 monthly in insurance premiums. Generally speaking, the amount you want to get is enough to cover the funeral costs, the balance of your mortgage, and the cost of a college education. Getting life insurance is easy as you can do it all online via companies such as PolicyMe. You’ll still get access to licensed advisors. There’s just no need to meet face-to-face since they walk you through the policies.

Since I’m being all morbid, don’t forget to get your will done. Many people still prefer to go to a lawyer to get their wills done, but they can charge a fair amount. DIY wills kits aren’t bad, but I think there’s a better solution now in Willful. With Willful, you can create a legally binding will online. You only pay for it once and you get unlimited updates for free. Willful makes creating a will quick, easy, and inexpensive. Click my Willful affiliate link and use promo code MONEYWEHAVE15 to get $15 off your will.

Registered Education Savings Plan

Setting up an RESP isn’t mandatory, but I would consider it a cost of raising a child in Canada. You can get $500 free every year through the Canadian Education Savings Grant. The grant gives you a 20% match on the first $2,500 you save every year until your child turns 17, with a lifetime maximum benefit of $7,200 per child. Contributions aren’t tax-deductible, but any gains would be taxable under your child when withdrawn. Since your child typically won’t have much income, the gains are usually tax-free.

Lower-income families could potentially get a higher match, and they can access up to $2,000 to help kick-start their child’s RESP through the Canada Learning Bond. The money is completely free; no fees and no additional contributions are required.

The cost of college and university is expensive. While students can apply for loans, that’s often based on family income. In other words, if you have a high family income and haven’t saved for your child’s education, there’s no guarantee they’ll get approved for a loan later.

If setting up an RESP and investing is freaking you out, consider using a robo advisor such as Justwealth. Robo advisors have low fees and automate their investment strategy. All you need to do is set up an account and choose the year your child will graduate from high school. The robo advisor will then invest and balance your RESP with that target date in mind. When you sign up for Justwealth through my referral link, you’ll get a $50 bonus.

Canadian Child Benefit

The cost of raising a child in Canada is offset by the Canadian Child Benefit, which provides up to $6,997 per year ($583.08  per month) for each eligible child under the age of six and up to $5,903  per year ($491.91 per month) for each eligible child aged six6 to 17. This benefit was created with lower-income families in mind. If you’re in a household that earns a middle-income or higher income, there’s a possibility that you won’t qualify for the Canadian Child Benefit. Some people find that unfair as they may still have to pay for childcare and other expenses, but I don’t mind the current system. Use the child and family benefits calculator to see what you’re entitled to.

Food costs

When your child is an infant, food costs will be minimal you’re breastfeeding. Of course, not everyone can breastfeed, so if you need to purchase formula, you’ll need to budget for that. Even when your kids get to preschool age, you probably won’t spend more than an additional $100 per month to feed them. 

However, every child is different. Some kids eat a lot, so your monthly grocery budget could increase quite a bit. You’ll be shocked at how much fresh fruit your kids go through. My daughter is six now, and I’m spending about $100 a month on groceries a month for her alone. That said, I have friends that are spending double that because their child eats a lot. Can you imagine how much food will cost when they’re teenagers? 

Miscellaneous expenses

The above costs are good estimates for major expenses, but many people will forget about he miscellaneous expenses that add up. You won’t need to budget for all of the following right away, but it’ll be something that you’ll want to think about.

• Haircuts
• Clothes
• Sports equipment
• Classes
• School fees (field trips, pizza lunches, etc.)
• Activity books
• Subscription programs and apps
• Car seat

Final thoughts

Having a baby is a serious decision that should be made with our finances in mind. Most parents will divert all their savings toward their children, but it’s foolish to ignore your own retirement savings in the process. While trying to budget the average annual cost of having children is nice, the reality is that the real costs will always be unknown. Married couples that have dual income will often be in a better position than a single parent. However, just because you’re a married couple, that doesn’t mean raising a child is any easier.

What is universal life insurance?

Universal is a type of permanent life insurance, which means that it follows you throughout the entirety of your life rather than a set number of years, like term insurance. That is, as long as you continue to keep paying the minimum premium. 

Where a UL policy differs from other types of permanent life insurance is that a portion of your premium payments go towards the actual life insurance, while another portion is divided into both a savings account and investments. Any savings/investments are tax-differed, and you can borrow against or withdraw from the policy (assuming you meet the minimum cash value requirement), which can be very handy in case of an emergency. Plus, you still have the death benefit for your beneficiaries. 

What’s the cash value of universal life insurance?

While the idea of investing and saving part of your premiums does seem attractive, as said above, one of the biggest concerns with universal life insurance is that the payments will actually cost more than the cash value. Since a portion of your payments goes towards investments, the cash value of universal life insurance will fluctuate over time depending on the interest rates. In an ideal world, it would increase. However, since it is an investment, it can just as easily decrease.

Don’t get caught up too much in building cash value with universal life insurance. The point of life insurance is to protect your dependents if you were to suddenly pass. Making sure they have enough to live without your income is more important than any investments that you can build with your policy.

Universal life vs whole life insurance

Now that you know what is universal life insurance, you’ll want to understand how it compares to other life insurance products.

Both universal life and whole life insurance are types of permanent life insurance, so as long as you pay your premiums, you will have lifetime coverage. Both types of life insurance allow you to borrow against or withdraw the cash value from the policy. 

However, a whole life policy is consistent. You will pay the same amount in premiums and have a guaranteed cash value accumulation. Universal life insurance, on the other hand, is more flexible when it comes to premiums and death benefits which also means that it can have less expensive premiums. However, that flexibility comes at a price, and universal life insurance doesn’t have as many guarantees. One of the biggest risks with universal life insurance is that your account may become underfunded and lapse. 

Universal life vs term life insurance

Universal and term life insurance are even more different. Term life insurance, as the name indicates, is only valid for a term or a set amount of time (ie: 10 years), whereas universal life insurance is permanent life insurance coverage and is designed to last the span of your lifetime.

Term life insurance only offers a death benefit, whereas universal life insurance offers a death benefit plus a savings component that policyholders can borrow against or withdraw from the cash value, which a permanent life insurance like universal life insurance does.  That said, term life insurance typically offers much larger death benefit options than universal life insurance.

Most experts recommend getting term life insurance and investing the difference compared to a universal life insurance policy into a stock market index such as the S&P 500 or Nasdaq. By doing this, you’d be creating your own cash value account.

Who is universal life insurance good for?

Universal life insurance isn’t for everyone. It is more complicated than other life insurance options and requires management by someone, such as a financial advisor, who really knows what they are doing. So if you want something simple and affordable, it’s not the best choice. That said, universal life insurance may be the right choice for you if you are someone who wants permanent coverage and:

• Wants access to cash that can be either borrowed or withdrawn throughout the duration of the policy
• Wants flexibility to adjust premiums and/or death benefits over the years
• Wants to have control over the investment portion

Typically speaking, this form of permanent life insurance is most commonly chosen by young Canadians who earn a high income and can afford to take on more risk since it’s a long-term investment and they don’t expect to need the money for many years to come or, individuals in a high-income bracket who have maxed out both their Registered Retirement Savings Plan and Tax-Free Savings Account.

How much does universal life insurance cost?

Universal life insurance premiums will vary depending on several variables and circumstances. That said, generally speaking, the cost of insurance will run you the following every month. 

• Under $100,000 coverage – $40/month
• $250,000 – $500,000 coverage – $81/month
• $1,000,000 – $2,000,000 – $93/month

Keep in mind that these are just averages. Factors such as gender, age, health, profession, lifestyle etc., will all play a role in determining your premiums.

How to access money from cash-value life insurance

One of the draws of universal life insurance is being able to access the policy’s cash value. However, in order to be able to do that, you need to be aware of the requirements and possible repercussions.

• It takes the cash value a while to build, and a minimum amount is required before you can borrow or withdraw.
• Cash withdrawals will likely impact the death benefit on your policy.
• There may be tax implications for withdrawing.

Pros and cons of universal life insurance

There are a lot of opinions on universal life insurance. Some people love the option and consider it to be a terrible product for the general public. So, before you decide, here are some main advantages and disadvantages of universal life insurance.

Universal life insurance pros

• Permanent lifetime coverage
• Potential of cash value growth over time thanks to investment strategies
• Flexible premium payments 
• Flexible death benefit amounts
• Tax deferral strategies 

Universal life insurance cons

• More expensive than term life insurance
• Possible limitations on cash value (make sure you understand the fine print)
• Hands-on and needs to be monitored
• Building the cash value takes time
• The investment portion can lose value as easily as it can gain value
• Flexibility options likely will require a health exam which may increase the price of your premiums

Is universal life insurance a good investment?

So, is universal life insurance a good investment? Well, maybe if you have specific life circumstances, but overall, for the average Canadian, probably not. There are a lot of risks, it requires a lot of attention, and while the savings and investment portion are intriguing, chances are you can earn more just by investing that money into your TFSA or RRSP. 

Since your universal life insurance policy is only valid so long as your cash value is above zero, you are taking on a lot of risk. According to a study by PolicyMe, 88% of universal life policies never pay out because the policyholders are unable to afford the premiums. 

How to get universal life insurance

Now that you know what is universal life insurance, and life insurance in general, you might be thinking it’s time to get a policy.

Whether you’re looking for universal or term life insurance products, you’ll want to shop around for quotes to ensure you get the best policy for your personal circumstances. You can do this yourself by checking in with individual life insurance companies, or you can work with an insurance broker or advisor who will get quotes for you. This can be done in person or online.

Once you are ready to apply, make sure you have the following on hand:

• Some form of identification (SIN, driver’s licence, passport, etc.)
• Proof of income (paystub or a letter of employment)
• Proof of address (from a bill or letter from your landlord)